Bitfarms Acquires Land in Yguazu for 100 MW Mining Facility
On Wednesday, Bitfarms, a bitcoin mining enterprise listed on the U.S. stock market, announced its successful acquisition of a new site in Yguazu, Paraguay. The company plans to establish a 100 megawatt (MW) mining facility at this location. This development is part of Bitfarms' ambitious plan to increase its mining capacity to 21 exahash per second (EH/s) by the end of this year.
Aligning with the Mining Sector's Expansion Trend
Bitfarms' move to secure land in Yguazu, Paraguay, is in line with the current trend of significant expansion observed in the mining sector. Many mining corporations have been expanding their operations and acquiring a large number of application-specific integrated circuit (ASIC) mining rigs.
In regards to the new acquisition, Geoff Morphy, the president and CEO of Bitfarms, stated that the newly acquired land is strategically located near the Itaipú Dam, which is the third largest hydropower dam in the world with an installed capacity of 14 gigawatts. Morphy further emphasized that the facility will benefit from the region's abundant renewable energy resources, making it economically and environmentally sustainable.
Transitioning to Sustainable Bitcoin Mining
With the establishment of the Yguazu facility, Bitfarms expects that over 85% of its portfolio will be powered by low-cost green energy, promoting environmentally sustainable bitcoin mining practices.
The construction phase of the new facility is projected to be completed by the latter part of 2024. This growth is a crucial part of Bitfarms' strategy to increase its corporate hashrate to 21 EH/s by the end of 2024. To achieve this goal, the company has leveraged a purchase option agreement with Bitmain to acquire additional T21 mining rigs.
Despite experiencing a 5% increase in value against the U.S. dollar on Wednesday, BITF shares have seen an 8% decline over the week. Furthermore, data from the past 30 days indicates a loss exceeding 25% in the value of BITF shares this month.
What are your thoughts on Bitfarms' expansion in Paraguay? Share your opinions on this subject in the comments section below.
Frequently Asked Questions
How much money should my Roth IRA be funded?
Roth IRAs let you save tax on retirement by allowing you to deposit your own money. You cannot withdraw funds from these accounts until you reach 59 1/2. If you decide to withdraw some of your contributions, you will need to follow certain rules. First, you can't touch your principal (the initial amount that was deposited). You cannot withdraw more than the original amount you contributed. If you wish to withdraw more than you originally contributed, you will have to pay taxes.
The second rule is that your earnings cannot be withheld without income tax. Also, taxes will be due on any earnings you take. Consider, for instance, that you contribute $5,000 per year to your Roth IRA. Let's also say that you earn $10,000 per annum after contributing. On the earnings, you would be responsible for $3,500 federal income taxes. The remaining $6,500 is yours. The amount you can withdraw is limited to the original contribution.
So, if you were to take out $4,000 of your earnings, you'd still owe taxes on the remaining $1,500. You'd also lose half the earnings that you took out, as they would be subject to a second 50% tax (half of 40%). Even though you had $7,000 in your Roth IRA account, you only received $4,000.
There are two types: Roth IRAs that are traditional and Roth. A traditional IRA allows you to deduct pre-tax contributions from your taxable income. Your traditional IRA can be used to withdraw your balance and interest when you are retired. A traditional IRA can be withdrawn up to the maximum amount allowed.
Roth IRAs do not allow you to deduct your contributions. Once you are retired, however, you may withdraw all of your contributions plus accrued interest. There is no minimum withdrawal requirement, unlike traditional IRAs. You don't need to wait until your 70 1/2 year old age before you can withdraw your contribution.
Do you need to open a Precious Metal IRA
The most important thing you should know before opening an IRA account is that precious metals are not covered by insurance. If you lose money in your investment, nothing can be done to recover it. This includes investments that have been damaged by fire, flooding, theft, and so on.
This type of loss can be avoided by investing in physical silver and gold coins. These items can be lost because they have real value and have been around for thousands years. They are likely to fetch more today than the price you paid for them in their original form.
When opening an IRA account, make sure you choose a reputable company offering competitive rates and high-quality products. Consider using a third-party custody company to keep your assets safe and allow you to access them at any time.
When you open an account, keep in mind that you won't receive any returns until your retirement. Don't forget the future!
How much of your IRA should include precious metals?
It's important to understand that precious metals aren't only for wealthy people. You don’t need to have a lot of money to invest. There are many ways to make money on silver and gold investments without spending too much.
You may consider buying physical coins such as bullion bars or rounds. Shares in precious metals-producing companies could be an option. Another option is to make use of the IRA rollover programs offered by your retirement plan provider.
You will still reap the benefits of owning precious metals, regardless of which option you choose. These metals are not stocks, but they can still provide long-term growth.
Their prices rise with time, which is a different to traditional investments. This means that if you decide on selling your investment later, you'll likely get more profit than you would with traditional investing.
What tax is gold subject in an IRA
The fair market price of gold when it is sold determines the tax due on its sale. You don't pay taxes when you buy gold. It's not considered income. If you decide to sell it later, there will be a taxable gain if its price rises.
For loans, gold can be used to collateral. Lenders seek to get the best return when you borrow against your assets. For gold, this means selling it. There's no guarantee that the lender will do this. They may just keep it. They may decide to resell it. Either way you will lose potential profit.
In order to avoid losing your money, only lend against your precious metal if you plan to use it to secure other collateral. It's better to keep it alone.
Statistics
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- The price of gold jumped 131 percent from late 2007 to September 2011, when it hit a high of $1,921 an ounce, according to the World Gold Council. (aarp.org)
- Contribution limits$6,000 (49 and under) $7,000 (50 and up)$6,000 (49 and under) $7,000 (50 and up)$58,000 or 25% of your annual compensation (whichever is smaller) (lendedu.com)
- If you accidentally make an improper transaction, the IRS will disallow it and count it as a withdrawal, so you would owe income tax on the item's value and, if you are younger than 59 ½, an additional 10% early withdrawal penalty. (forbes.com)
External Links
investopedia.com
wsj.com
- Saddam Hussein’s InvasionHelped Uncage a Bear In 1989 – WSJ
- Do you want to keep your IRA gold at home? It's Not Exactly Lawful – WSJ
law.cornell.edu
- 7 U.S. Code SS7 – Designation Boards of Trade as Contract Markets
- 26 U.S. Code SS 408 – Individual retirement accounts
cftc.gov
How To
The History of Gold as an Asset
From the very beginning of time, gold was a currency. It was widely accepted around the world and enjoyed its purity, divisibility and uniformity. Because of its intrinsic value, it was also widely traded. Different weights and measurements existed around the world, however, because there were not international standards to measure gold. One pound sterling, for example, was equivalent in England to 24 carats, and one livre tournois, in France, to 25 carats. A mark, on the other hand, was equivalent in Germany to 28 carats.
In the 1860s, the United States began issuing American coins made up of 90% copper, 10% zinc, and 0.942 fine gold. This led to a decline in demand for foreign currencies, which caused their price to increase. At this point, the United States minted large amounts of gold coins, causing the price of gold to drop. They needed to pay off debt because they had too much money coming into circulation. To do so, they decided to sell some of the excess gold back to Europe.
Because most European countries did not trust the U.S. dollar, they started accepting gold as payment. However, after World War I, many European countries stopped taking gold and began using paper money instead. The gold price has gone up significantly in the years since. Even though the price fluctuates, gold is still one of best investments.
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By: Jamie Redman
Title: Bitfarms Expands Mining Capacity with New Facility in Paraguay
Sourced From: news.bitcoin.com/bitfarms-expands-mining-operations-with-new-100-mw-facility-in-paraguay-aiming-for-21-eh-s-capacity-by-year-end/
Published Date: Wed, 24 Jan 2024 22:00:26 +0000
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